February 20, 2025 – In a move seen as the latest cost-cutting attempt by its CEO Jim Farley, Ford Motor Company has reportedly denied stock bonuses to 1,650 out of its approximately 3,300 mid-level managers globally this year, according to a Reuters report published today.
Four sources revealed that while Ford typically distributes stock incentives in March each year, this year, senior executives were tasked with selecting half of their mid-level managers to receive the rewards.
A spokesperson for Ford Motor Company clarified that this adjustment aims to motivate employees to enhance their performance. “We are focused on fostering a high-performance culture that recognizes and rewards employees for their contributions to the business,” the spokesperson stated.
Separately, three sources disclosed that Ford has introduced a separate bonus tied to the company’s overall performance, encompassing vehicle quality, total revenue, and electric vehicle sales, accounting for 69% of the potential bonus pool for 2024. Reuters reported in October last year that these bonuses would be reduced due to the company’s underwhelming performance.
Some employees perceive this measure as a form of downsizing by Ford and indicated that they are seeking new job opportunities. David Whiston, an analyst at Morningstar, echoed this sentiment, saying, “Given the focus on mid-level managers, this could be a way to force some people out.”
The Michigan-based automaker has been grappling with operational inefficiencies, and Jim Farley has emphasized for years that Ford is undergoing a fundamental transformation to become leaner and more competitive as it faces competition from U.S. rivals, Chinese automakers, and electric vehicle producer Tesla.
Over the past year, Ford’s share price has declined by approximately 23%, while shares of its Detroit rival, General Motors, have surged by around 23%, fueled by cost reductions and increased profits.
In addition, Ford is navigating the uncertainty surrounding the new U.S. President’s trade policies, scheduled to take effect on March 1. Jim Farley expressed concerns that these policies could bring “additional costs and disruptions.”
Other American automakers similarly face heightened risks, particularly regarding tariffs in Mexico and Canada. Research reveals that Ford currently ships a significant number of vehicles from Mexico, including the Mustang Mach-E, Bronco Sport, and Maverick pickup trucks.
